ADNOC refining arm, Abu Dhabi Oil Refining Company - Takreer, Neste Oil of Finland and the Austrian oil and gas group OMV are proceeding with their plans to form a joint venture company and build a plant to produce sulfur free, Very High Viscosity Index (VHVI) Group III base oil in Ruwais (Abu Dhabi). The base oil will be used for blending top-tier lubricants. The joint venture company will be owned 60% by Takreer and 20% each by Neste Oil and OMV.
The parties signed the Heads of Terms agreement in Abu Dhabi which includes basic principles for the design, construction, and operation of the base oil facility and the commercial terms of the project.
The planned facility will be capable of producing 500,000 tons per year of VHVI base oils used for blending top-tier lubricants. Feedstock for the base oil facility will be provided from Takreer Hydrocracker unit at Ruwais Refinery. Neste Oil will bring in technology and production know how and will initially be responsible for marketing of the products. OMV will bring in know how in base oil blending and marketing experience. The Front End Enginering Design (FEED) is planned to be assigned by the 2nd quarter 2008. The parties intend to make a final decision on the investment after the FEED phase.
Demand for high performance sulfur free base oils is increasing globally due to their ability to meet current and future performance requirements and more stringent environmental standards.
The project combines the strengths of all 3 parties in design, production and marketing high performance base oils.
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Background information:
Takreer
Takreer is a refining company with an over all crude and condensate processing capacity of about 500,000 bbl/d. Takreer with its fundamental strength in oil refining is now working on expanding its activities in the downstream sector to identify and deploy products and process technologies that would provide a competitive edge. Takreer with a vision to become a leading diversified oil refining company is now interested in expanding its product portfolio by venturing into production of high quality base oils.
Neste Oil
Neste Oil with its head office in Espoo, Finland is a refining and marketing company focused on advanced, clean traffic fuels with a strategy that prioritizes growing its refining and premium quality bio diesel businesses. Neste Oil has a total refining capacity of approximately 250,000 bbl/d. Neste Oil is an industry leader in manufacturing and marketing of Very High Viscosity Index (VHVI) base oils under the Nexbase brand.
OMV Aktiengesellschaft
With Group sales of EUR 18.97 billion and a workforce of 40,993 employees in 2006, as well as market capitalization of approx. EUR 14 billion, OMV Aktiengesellschaft is Austria's largest listed industrial company. As the leading oil and gas group in Central Europe, OMV is active in Refining and Marketing (R&M) in 13 countries. In Exploration and Production (E&P) OMV is active in 20 countries on five continents. OMV sells more than 14 bcm gas a year. OMV's Austrian gas hub Baumgarten annually transports approximately 47 bcm of gas. OMV's Central European Gas Hub is amongst the three largest hubs in Europe.
With the acquisition of a majority stake in the Romanian Petrom, OMV has become the largest oil and gas group in Central Europe, with oil and gas reserves of approx. 1.3 billion boe, daily production of around 320,000 boe and an annual refining capacity of 26.4 million metric tons. OMV now has over 2,518 filling stations in 13 countries. The market share of the group in the R&M business segment in the Danube Region is now 20%.
OMV further strengthened its leading position in the European growth belt through the acquisition of 39.6% of Petrol Ofisi, Turkey's leading company in the retail and commercial business.
In June 2006, OMV has established the OMV Future Energy Fund, a wholly owned subsidiary to support projects in renewable energy with more than EUR 100 Mio to initiate the change from a pure oil and gas group to an energy group with renewable energy in its portfolio.
OMV: Corporate Social Responsibility (CSR)
OMV is actively committed to the values enshrined in its Code of Conduct. These include a strong sense of responsibility towards the social and natural environment in economically weak regions. OMV works hard to address economic, environmental and social issues related to its operations. Its CSR activities are fully documented in biannual performance reports compiled according to Global Reporting Initiative guidelines.
For further information, please contact:
Gladson Ronad
MCS Action
Tel: +971 4 3902960
Email: gladson.r@actionprgroup.com
Fouad Kassem
MCS Action
Tel: +971 4 3902960
Email: fouad.k@actionprgroup.com
OMV
Bettina Gneisz
Tel.: 0043 1 40 440 21660
E-Mail: bettina.gneisz@omv.com
Website: http://www.omv.com
Thomas Huemer
Tel.: 0043 1 40 440 21660
E-Mail: thomas.huemer@omv.com
Website: http://www.omv.com
© Press Release 2007
